Cash App customers in New York who have experienced unauthorized access to their account have less than two weeks to submit a claim to receive compensation as a result of a multi-million dollar settlement.
Mobile payment service Cash App has been required to pay $15 million after a class action lawsuit filed in February claims the company “failed to implement appropriate controls to prevent unauthorized access to and use of Cash App and Cash App Investing accounts” and “mishandled and failed to adequately resolve customer complaints regarding unauthorized or fraudulent transactions.”
Here’s what to know.
What the lawsuit entails
According to the lawsuit, Cash App didn’t safeguard consumer information after a December 2021 data breach, which “resulted in the unauthorized public release of personally identifiable information of 8.2 million current and former Cash App Investing customers.” And a second data breach led to more of the same in 2023, the lawsuit states.
Specifically, the lawsuit claims, in 2022, a former Cash App employee accessed account data without permission and in 2023, an unauthorized user accessed certain Cash App accounts through the use of recycled phone numbers linked to the accounts.
In addition to the required $15 million payment, the company has also agreed to enhance their data security as a result of the settlement but Cash App is denying any liability or wrongdoing in regards to the claims brought forth in the lawsuit.
When is the deadline to submit a claim for the Cash App settlement?
You must submit a completed claim form by Nov. 18, 2024.
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Do I qualify to file a claim for the Cash App settlement?
Current and former Cash App users whose personal information or account was accessed without permission or those who experienced unauthorized or fraudulent withdrawals or transfers of funds from their Cash App account between Aug. 23, 2018 and Aug. 20, 2024, are eligible to submit a claim.
You can submit a claim to receive the following benefits:
- Out-of-pocket losses, including but not limited to, costs associated with requesting a credit report, costs associated with a credit freeze or costs associated with canceling a payment card and/or obtaining a replacement payment card. You could receive up to $2,500.
- Lost time of up to three hours at a rate of $25 per hour.
- Documented transaction losses by submitting a copy of a notification to the company of an unauthorized account event, a copy of a police report about an unauthorized account event and/or documentation demonstrating that an unauthorized account event occurred.
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How can I submit a claim for the Cash App settlement?
Affected Cash App users can file their claim by visiting cashappsecuritysettlement.com/submit-claim.
Emily Barnes reports on consumer-related issues for the USA TODAY Network’s New York Connect Team, focusing on scam and recall-related topics. Follow her on Twitter and Instagram @byemilybarnes. Get in touch at ebarnes@gannett.com.
